how to manage a troubled project gtc...

1©2007 Center for Project Management, All Rights Reserved

How To Manage a Troubled Project

GTC 2007

®


How To Manage a Troubled Project


LogisticsLogistics

•• Start and finishStart and finish•• Breaks and lunchBreaks and lunch

–– Morning: one 15Morning: one 15--minute breakminute break–– Lunch: 60 minutesLunch: 60 minutes–– Afternoon: one 15Afternoon: one 15--minute breakminute break

•• Facilities, telephones and messagesFacilities, telephones and messages•• Questions, class discussions,Questions, class discussions,

and exercisesand exercises


ProcessProcess

How to Manage a Troubled ProjectHow to Manage a Troubled Project•• Recognize the early warning signsRecognize the early warning signs•• How to plan a project recoveryHow to plan a project recovery

–– Review and revise due diligenceReview and revise due diligence•• Scope statementScope statement•• Stakeholder analysisStakeholder analysis•• Risk assessment and risk management plansRisk assessment and risk management plans

–– Review and revise project management planReview and revise project management plan•• WBS/Network DiagramWBS/Network Diagram•• EstimatesEstimates•• Team member performance/assignmentTeam member performance/assignment•• Sponsorship commitmentSponsorship commitment

–– Review and revise project scheduleReview and revise project schedule•• How to kill a troubled projectHow to kill a troubled project•• Seminar closureSeminar closure


LaunchLaunchLaunch

Plans &EstimatesPlans &Plans &

EstimatesEstimates

4 Stages, 24 Steps Scaleable Model

4 Stages, 24 Steps 4 Stages, 24 Steps Scaleable ModelScaleable Model

ImplementImplementImplement

SuccessSuccess

Schedule,Track & Control

Schedule,Schedule,Track & ControlTrack & Control

ExecuteExecuteExecutePre LaunchPre LaunchPre Launch

CompletedProject

CompletedCompletedProjectProject

ProjectCharterProjectProjectCharterCharter

Project Process ArchitectureProject Process Architecture™™

Today’s Focus


Pre-Launch

1. Project Description2. Intra-Project Priority

Analysis3. Stakeholder Analysis4. Complexity Assessment5. Policies, Standards,

and Procedures

6. Impact Assessment7. Constraints & Obstacles8. Stability9. Issues

10. Risk Assessment11.Scope, Size12. Project Charter

= Recommended for all projects= Recommended for all projects

Project CharterProject Charter



Launch

13. Task Plan

14. Prototyping Plan

15. Scope Management Plan

16. Organization Plan

17. Staffing and Training Plan

18. Communication Plan

19. Project Notebook

20. Estimates

Plans & EstimatesPlans & Estimates




Execute

21. Schedules

22. Progress Reviews and Project Control

Schedule, Track &ControlSchedule, Track &Control




Implement

23. Project Implementation and Closure

24. Process Assessment

Completed ProjectCompleted Project




Dealing with Troubled ProjectsDealing with Troubled Projects

•• Many organizations waste a great deal of Many organizations waste a great deal of money by allowing troubled projects to money by allowing troubled projects to continue long after there were signs of troublecontinue long after there were signs of trouble

•• Two key questions should be asked Two key questions should be asked throughout the life of the project:throughout the life of the project:–– Are we doing the right project?Are we doing the right project?–– Are we doing the project right?Are we doing the project right?


Troubled Project AssessmentTroubled Project Assessment

•• Project managers must have an established Project managers must have an established process to make timely decisions regarding process to make timely decisions regarding project shutdownproject shutdown

•• There are three steps in the process:There are three steps in the process:–– AnalysisAnalysis–– DecisionDecision–– ActionAction


Troubled Project AssessmentTroubled Project Assessment

KeyQuestions

KeyQuestions

VitalSignsVital

SignsCancelProject

CancelProject

ContinueProject with

Recovery Plan

ContinueProject with

Recovery Plan

ContinueProject asPlanned

ContinueProject asPlanned

Sponsor and/or Project Steering Committee

Analysis Decision Action


Analysis (1)Analysis (1)

•• In analysis, ask a set of key questions:In analysis, ask a set of key questions:–– Is this an approved project?Is this an approved project?–– Is this a unique project?Is this a unique project?–– Is there a fit with business strategy?Is there a fit with business strategy?–– Is the technology viable?Is the technology viable?–– Is there an appropriate sponsor?Is there an appropriate sponsor?–– Is there customer buyIs there customer buy--in?in?–– Is the project dependent on another project?Is the project dependent on another project?–– Is the defect rate acceptableIs the defect rate acceptable

•• Interpret the responses to key questionsInterpret the responses to key questions–– Yes to all questionsYes to all questions----green lightgreen light–– No to one or more, but solutions in sightNo to one or more, but solutions in sight----yellow warning lightyellow warning light–– No to one or more, no solution in sightNo to one or more, no solution in sight----red light, danger, red light, danger,

approaching shutdownapproaching shutdown


Analysis (2)Analysis (2)

•• Reassess all vital signsReassess all vital signs•• Combine the key questions and vital signs Combine the key questions and vital signs

informationinformation•• Analyze the findings and present Analyze the findings and present

recommendations to the sponsor for decisionrecommendations to the sponsor for decision


Weighing the FactsWeighing the Facts

WarningWarning RRR

RRR RRR

RRR

RRR

YYY

YYY YYY

GGG

DangerDanger

OKOK

VitalVitalSignsSigns

War

ning

War

ning

Dan

ger

Dan

ger

OK

OK

Key QuestionsKey Questions

ContinueContinue

Recovery PlanRecovery Plan

CancelCancel

GGG

YYY

RRR


DecisionDecision

•• The sponsor and/or the steering committee The sponsor and/or the steering committee meet to review the project managermeet to review the project manager’’s s information and make a decision regarding information and make a decision regarding the fate of the projectthe fate of the project

•• There are two options:There are two options:–– Develop a project recovery plan and continue the Develop a project recovery plan and continue the

projectproject–– Develop a cancellation plan and cancel the projectDevelop a cancellation plan and cancel the project


DecisionDecision--Making and Action StepsMaking and Action Steps

CancelProject

CancelCancelProjectProject

Develop Cancellation

Plan

Develop Develop Cancellation Cancellation

PlanPlan

Continue Project

Continue Continue ProjectProject

Implement Recovery

Plan

Implement Implement Recovery Recovery

PlanPlan

NO

YES

Continue Project?

PM’s Analysis• Key Questions• Vital Signs

Implement Cancellation

Plan

Implement Implement Cancellation Cancellation

PlanPlan

Develop Recovery

Plan

Develop Develop Recovery Recovery

PlanPlan


Deploy Recovery PlanDeploy Recovery Plan

•• If the decision is to save the projectIf the decision is to save the project–– The project manager develops an aggressive The project manager develops an aggressive

recovery planrecovery plan–– The project manager and sponsor must monitor The project manager and sponsor must monitor

the project closely and report frequently to the the project closely and report frequently to the steering committee.steering committee.


““Troubled Project SelectionTroubled Project Selection””

•• Working with your team Working with your team –– select a troubled select a troubled project to focus on during the sessionproject to focus on during the session

•• Select a project that team members can Select a project that team members can relate torelate to

•• Timing: 10 minutesTiming: 10 minutes


Recognize the Early Warning SignsRecognize the Early Warning Signs


Project Vital SignsProject Vital Signs

•• Project vital signs are the aggregate Project vital signs are the aggregate indicators of the overall health of a projectindicators of the overall health of a project

•• We use 15 vital signsWe use 15 vital signs–– StrategicStrategic

•• Strategy alignment, sponsorship, customer buyStrategy alignment, sponsorship, customer buy--in, in, technology viability, valuetechnology viability, value--toto--business, vendor viabilitybusiness, vendor viability

–– TacticalTactical•• Status of the critical path, milestone hit rate, deliverable Status of the critical path, milestone hit rate, deliverable

hit rate, unresolved issues, costhit rate, unresolved issues, cost--toto--date, actual resources date, actual resources vs. planned resourcesvs. planned resources

–– EnvironmentalEnvironmental•• High probabilityHigh probability--high impact risks, overtime utilization, high impact risks, overtime utilization,

team disposition (effectiveness)team disposition (effectiveness)


Project Vital SignsProject Vital Signs

15. Team disposition (effectiveness)15. Team disposition (effectiveness)14. Overtime utilization14. Overtime utilization13. High probability, high impact risks13. High probability, high impact risks12. Actual resources vs. planned resources12. Actual resources vs. planned resources11. Cost11. Cost--toto--datedate10. Unresolved issues10. Unresolved issues9. Deliverable hit rate9. Deliverable hit rate8. Milestone hit rate8. Milestone hit rate7. Status of the critical path7. Status of the critical path6. Vendor viability6. Vendor viability5. Value5. Value--toto--businessbusiness4. Technology viability4. Technology viability3. Customer buy3. Customer buy--inin2. Sponsorship2. Sponsorship1. Strategy alignment1. Strategy alignment


Monitoring the Vital SignsMonitoring the Vital Signs

•• The project manager needs to watchThe project manager needs to watch–– The individual vital signsThe individual vital signs–– The aggregate vital signs statusThe aggregate vital signs status

(The (The ““Project Health ReportProject Health Report””))


Vital Signs IndicatorsVital Signs Indicators

•• Green lightGreen light–– All is wellAll is well–– Variance is acceptableVariance is acceptable

•• Yellow lightYellow light–– Caution, trouble aheadCaution, trouble ahead–– The vital sign has reached a level at which it will The vital sign has reached a level at which it will

begin to have a negative impact on the projectbegin to have a negative impact on the project

•• Red lightRed light–– Danger, measurable impact on the projectDanger, measurable impact on the project–– May be beyond project managerMay be beyond project manager’’s ability to s ability to

recoverrecover


Strategy AlignmentStrategy Alignment

•• Does the project continue to fit with the Does the project continue to fit with the currently stated organizational strategycurrently stated organizational strategy

–– Fully alignedFully aligned GreenGreen–– Somewhat alignedSomewhat aligned YellowYellow–– No alignmentNo alignment RedRed


SponsorshipSponsorship

•• One of the most important and difficult signs One of the most important and difficult signs to monitorto monitor

•• The basic questions about sponsorship are:The basic questions about sponsorship are:–– Is the sponsor aware of their specific Is the sponsor aware of their specific

responsibilities? Discussed them with the PM?responsibilities? Discussed them with the PM?–– Has the sponsor set aside sufficient time to be an Has the sponsor set aside sufficient time to be an

effective sponsor?effective sponsor?–– Does the project manager have quick and easy Does the project manager have quick and easy

access to the sponsor for resolution of important access to the sponsor for resolution of important issues?issues?

–– Does the sponsor meet routinely with the project Does the sponsor meet routinely with the project manager to assess the status of various vital signs manager to assess the status of various vital signs and project progress?and project progress?


Sponsor ChecklistSponsor Checklist

•• We recommend using the sponsor checklist We recommend using the sponsor checklist to assess this vital signto assess this vital sign

•• Discuss it with the sponsorDiscuss it with the sponsor•• If the sponsor is agreeable to its useIf the sponsor is agreeable to its use

–– Agree on a customization for your projectAgree on a customization for your project–– Agree on an assessment processAgree on an assessment process

•• Vital signs for the checklist provided:Vital signs for the checklist provided:–– All items rated 3 or aboveAll items rated 3 or above GreenGreen–– One or two items rated < 3One or two items rated < 3 YellowYellow–– Three or more items rated < 3Three or more items rated < 3 RedRed


Sponsor Performance ChecklistSponsor Performance Checklist

1 2 3 4 1 2 3 4 10. Provides regular feedback to the project 10. Provides regular feedback to the project manager and team on performance.manager and team on performance.

1 2 3 4 1 2 3 4 9. Remains informed about the status of the project.9. Remains informed about the status of the project.1 2 3 4 1 2 3 4 8. Values the stage gate process.8. Values the stage gate process.1 2 3 4 1 2 3 4 7. Formally manages (oversees) the project scope.7. Formally manages (oversees) the project scope.

1 2 3 4 1 2 3 4 6. Helps resolve major policy and/or political issues.6. Helps resolve major policy and/or political issues.

1 2 3 4 1 2 3 4 5. Helps ensure timely availability of human 5. Helps ensure timely availability of human resources when needed.resources when needed.

1 2 3 4 1 2 3 4 4. Champions the project and the project team.4. Champions the project and the project team.

1 2 3 4 1 2 3 4 3. Ensures sustained buy3. Ensures sustained buy--in at key stakeholder level.in at key stakeholder level.

1 2 3 4 1 2 3 4 2. Timely approval of the project charter, plan, 2. Timely approval of the project charter, plan, schedule, and budget.schedule, and budget.

1 2 3 4 1 2 3 4 1. Champions the project.1. Champions the project.

Rating: 1=Rarely 2=Sometimes 3=Most of the Time 4=AlwRating: 1=Rarely 2=Sometimes 3=Most of the Time 4=Alwaysays

RatingRatingSponsor Performance ChecklistSponsor Performance Checklist


Customer BuyCustomer Buy--InIn

•• An assessment of the degree of An assessment of the degree of ongoingongoing buybuy--inin

–– High degree of buyHigh degree of buy--inin GreenGreen–– Medium degree of buyMedium degree of buy--inin YellowYellow–– Low degree of buyLow degree of buy--inin RedRed


Technology ViabilityTechnology Viability

•• An assessment of the viability of the technology An assessment of the viability of the technology infrastructure to support the projectinfrastructure to support the project–– Is the enabling technology available and viable for project Is the enabling technology available and viable for project

development?development?–– Will the technology remain viable as new scope is added into Will the technology remain viable as new scope is added into

the system?the system?–– Will the technology escalate easily to meet the projectWill the technology escalate easily to meet the project’’s s

operational requirements?operational requirements?–– Can it be supported by the IT organization?Can it be supported by the IT organization?–– Will the customers be able to adopt it?Will the customers be able to adopt it?

–– High degree of viabilityHigh degree of viability GreenGreen–– Medium degree of viabilityMedium degree of viability YellowYellow–– Low degree of viabilityLow degree of viability RedRed


ValueValue--toto--BusinessBusiness

•• Assumptions and realities may change Assumptions and realities may change regarding the projectregarding the project’’s value to the businesss value to the business

•• This vital sign takes stock of how valuable the This vital sign takes stock of how valuable the project remains to the businessproject remains to the business

–– High valueHigh value--toto--businessbusiness GreenGreen–– Medium valueMedium value--toto--businessbusiness YellowYellow–– Low valueLow value--toto--businessbusiness RedRed


Vendor ViabilityVendor Viability

•• Vendor viability can change as the project Vendor viability can change as the project progressesprogresses

•• This vital sign takes stock of the current This vital sign takes stock of the current vendor viability to support the projectvendor viability to support the project

–– High viabilityHigh viability GreenGreen–– Medium viabilityMedium viability YellowYellow–– Low viabilityLow viability RedRed


Status of the Critical PathStatus of the Critical Path

•• This vital sign measures the percent variance This vital sign measures the percent variance in the critical pathin the critical path

–– Breach of < 10%Breach of < 10% GreenGreen–– Breach of 10% to 20%Breach of 10% to 20% YellowYellow–– Breach of > 20%Breach of > 20% RedRed


VarianceVariance

DelayDelay+14.7%+14.7%22 days22 days172 172 daysdays

150 150 daysdays

Critical Critical pathpath

StatusStatus% Variance% VarianceVarianceVarianceCurrentCurrentBaselineBaselineVital SignVital Sign

Variance = Current - BaselinePercent variance = (Variance ÷ Baseline) X 100

Critical path variance = 172 days - 150 days = 22 days

Percent variance = (22 days ÷ 150 days) X 100

= (0.146) X 100

= 14.6%


Milestone Hit RateMilestone Hit Rate

•• This vital sign measures the variance of This vital sign measures the variance of actual milestone completions from planned actual milestone completions from planned milestone completions. It can be measured in milestone completions. It can be measured in two separate monitoring cyclestwo separate monitoring cycles–– ToTo--date performancedate performance

•• Planned milestone completions, toPlanned milestone completions, to--date, vs. actual date, vs. actual milestone completions, to datemilestone completions, to date

–– A shorter monitoring cycleA shorter monitoring cycle----every two weeksevery two weeks•• Planned milestone completions in the cycle vs. actual Planned milestone completions in the cycle vs. actual

milestone completions in the cyclemilestone completions in the cycle



Deliverable Hit RateDeliverable Hit Rate

•• This vital sign measures the variance of This vital sign measures the variance of actual deliverable completions from planned actual deliverable completions from planned deliverable completions. It can be measured deliverable completions. It can be measured in two separate monitoring cyclesin two separate monitoring cycles–– ToTo--date performancedate performance

•• Planned milestone completions, toPlanned milestone completions, to--date, vs. actual date, vs. actual milestone completions, to datemilestone completions, to date

–– A shorter monitoring cycleA shorter monitoring cycle----every four weeksevery four weeks•• Planned milestone completions in the cycle vs. actual Planned milestone completions in the cycle vs. actual

milestone completions in the cyclemilestone completions in the cycle



Unresolved IssuesUnresolved Issues

•• Unresolved issues represent holes in the Unresolved issues represent holes in the project plan and, as such, can have project plan and, as such, can have significant negative impactsignificant negative impact

•• The project manager should set dates for The project manager should set dates for resolution of all issuesresolution of all issues–– Any issue that remains unresolved 5 days after its Any issue that remains unresolved 5 days after its

resolution date should raise a yellow warning flagresolution date should raise a yellow warning flag–– Any issue that remains unresolved 7 days after its Any issue that remains unresolved 7 days after its

resolution day should raise a red warning flagresolution day should raise a red warning flag


The Unresolved Issues Vital SignThe Unresolved Issues Vital Sign

•• This vital sign is measured by comparing the This vital sign is measured by comparing the number of issues to the number of number of issues to the number of outstanding deliverables yet to be completedoutstanding deliverables yet to be completed–– No unresolved issuesNo unresolved issues GreenGreen–– Unresolved issues Unresolved issues

< outstanding deliverables< outstanding deliverables YellowYellow–– Unresolved issues Unresolved issues

> outstanding deliverables> outstanding deliverables RedRed


CostCost--toto--DateDate

•• This vital sign is measured by computing the This vital sign is measured by computing the percent variance between the baseline costpercent variance between the baseline cost--toto--date and the actual costdate and the actual cost--toto--datedate



For Organizations that Do Not Monitor Total CostFor Organizations that Do Not Monitor Total Cost

•• For organizations that do not monitor total For organizations that do not monitor total cost, we recommend tracking the variance cost, we recommend tracking the variance between planned effort (hours) vs. actual between planned effort (hours) vs. actual effort, to dateeffort, to date

•• We recommend that you use the following:We recommend that you use the following:–– Team effort: The effort expended by the team to Team effort: The effort expended by the team to

complete the project deliverables and taskscomplete the project deliverables and tasks–– Project management effort: The effort expended Project management effort: The effort expended

by the project manager to complete various by the project manager to complete various project management activitiesproject management activities

•• We do not recommend that you include the We do not recommend that you include the effort expended by various managers to fulfill effort expended by various managers to fulfill management duties for the projectmanagement duties for the project


Actual Resources vs. Planned ResourcesActual Resources vs. Planned Resources

•• This vital sign has three measurementsThis vital sign has three measurements–– The gap between the number of FTE team The gap between the number of FTE team

members actually working on the project vs. the members actually working on the project vs. the number of FTE initially planned.number of FTE initially planned.

–– The gap between the skill levels of people actually The gap between the skill levels of people actually assigned to the team vs. the skill levels used to assigned to the team vs. the skill levels used to develop the project estimates.develop the project estimates.

–– The amount of unplanned turnoverThe amount of unplanned turnover----the number of the number of team members who have left unexpectedlyteam members who have left unexpectedly


The Actual Resources vs. Planned Resources The Actual Resources vs. Planned Resources Vital SignVital Sign

•• This vital sign is measured principally by the variance This vital sign is measured principally by the variance in planned vs. actual FTEin planned vs. actual FTE


•• In addition, in our experience:In addition, in our experience:–– Unplanned turnover of a core team member can cause Unplanned turnover of a core team member can cause

the critical path to slip behind schedule by 4the critical path to slip behind schedule by 4--6 weeks.6 weeks.–– Unplanned turnover of a project manager can delay a Unplanned turnover of a project manager can delay a

project by 6project by 6--9 weeks.9 weeks.–– The change of a sponsor can jeopardize the entire The change of a sponsor can jeopardize the entire

project.project.


High Probability, High Impact RisksHigh Probability, High Impact Risks

•• Even with risk plans in place, carrying a large Even with risk plans in place, carrying a large number of highnumber of high--level risks is not healthy for a level risks is not healthy for a projectproject

–– One to three risksOne to three risks GreenGreen–– Four to five risksFour to five risks YellowYellow–– Six to seven risksSix to seven risks RedRed

•• A project that has more than seven high level A project that has more than seven high level risks has so many problems that vital sign risks has so many problems that vital sign monitoring may be futilemonitoring may be futile


Overtime UtilizationOvertime Utilization

•• Occasional overtime is a routine part of work Occasional overtime is a routine part of work life, but consistent overtime is a sign of deep, life, but consistent overtime is a sign of deep, systemic problems caused by poor systemic problems caused by poor management practicesmanagement practices

–– Overtime < 15%Overtime < 15% GreenGreen–– Overtime 15% to 25%Overtime 15% to 25% YellowYellow–– Overtime > 25%Overtime > 25% RedRed


Team Disposition (Effectiveness)Team Disposition (Effectiveness)

•• This is an often neglected vital signThis is an often neglected vital sign•• It is a qualitative sign, and difficult to measure.It is a qualitative sign, and difficult to measure.

–– A skilled and experienced individual should perform the A skilled and experienced individual should perform the assessmentassessment

–– Ideally, a perceptive project manager that walks the floor, Ideally, a perceptive project manager that walks the floor, talks with team members, and keeps lines of communication talks with team members, and keeps lines of communication openopen

•• Our vital sign is based on evaluations made with the Our vital sign is based on evaluations made with the Team Disposition Assessment toolTeam Disposition Assessment tool

–– All items rated 3 or aboveAll items rated 3 or above GreenGreen–– One or two items rated < 3One or two items rated < 3 YellowYellow–– Three or more items rated < 3Three or more items rated < 3 RedRed


Team Disposition (Effectiveness) AssessmentTeam Disposition (Effectiveness) Assessment

Rating: 1 = Rarely 2 = Sometimes 3 = Most of the Time Rating: 1 = Rarely 2 = Sometimes 3 = Most of the Time 4 = Always4 = Always

1 2 3 41 2 3 48. Professional growth: 8. Professional growth: There are ample opportunities for individual There are ample opportunities for individual growthgrowth----both through work experience and education and training both through work experience and education and training programs offered by the organizationprograms offered by the organization

1 2 3 41 2 3 47. Leadership: 7. Leadership: Project manager is well equipped to manage the Project manager is well equipped to manage the team and does it professionallyteam and does it professionally

1 2 3 41 2 3 46. Creativity and growth: 6. Creativity and growth: Team members are flexible, seek new and Team members are flexible, seek new and better waysbetter ways

1 2 3 41 2 3 45. Trust: 5. Trust: Members trust one another; they reveal to group what they Members trust one another; they reveal to group what they would be reluctant to expose to others; they respect and use thewould be reluctant to expose to others; they respect and use theresponses they get; they can freely express negative reactions responses they get; they can freely express negative reactions without fearing reprisalwithout fearing reprisal

1 2 3 41 2 3 44. Decision making: 4. Decision making: Consensus sought and tested; various points of Consensus sought and tested; various points of view appreciated and used to improve decisions; decisions (when view appreciated and used to improve decisions; decisions (when made) are fully supportedmade) are fully supported

1 2 3 41 2 3 43. Problem solving: 3. Problem solving: When problems surface, the project manager When problems surface, the project manager involves the team to help diagnose the root causes before proposinvolves the team to help diagnose the root causes before proposing ing actions; remedies attack basic causesactions; remedies attack basic causes

1 2 3 41 2 3 42. Participation: 2. Participation: All are involved; all are listened toAll are involved; all are listened to

1 2 3 41 2 3 41. Goals: 1. Goals: Clearly communicated to the team; shared by all; all care Clearly communicated to the team; shared by all; all care about the goals, and feel involvedabout the goals, and feel involved

RatingRatingTeam Disposition (Effectiveness) SurveyTeam Disposition (Effectiveness) Survey


Project Health Report ExamplesProject Health Report Examples

•• Example 1Example 1–– Seven vital signs selectedSeven vital signs selected–– Vital sign thresholds and weights establishedVital sign thresholds and weights established–– Overall project vital sign thresholds establishedOverall project vital sign thresholds established

•• Example 2Example 2–– A fixedA fixed--price contractprice contract–– Variance thresholds for costVariance thresholds for cost--toto--date have been date have been

tightenedtightened

•• Example 3Example 3–– A Zone I projectA Zone I project–– All of the tactical vital signs selected, to ensure All of the tactical vital signs selected, to ensure

close monitoring of performanceclose monitoring of performance


Project Health ReportProject Health Report----TacticsTacticsExample 1Example 1

TotalTotal00--5 = Green 65 = Green 6--10 = Yellow Greater than 10 = Red10 = Yellow Greater than 10 = Red

113344

11--3 Risks3 Risks44--5 Risks5 Risks66--7 Risks7 Risks

7. High7. High--probability, highprobability, high--impact risksimpact risks

002244

<10%<10%10% to 20%10% to 20%

>20%>20%

6. Actual resources vs. planned 6. Actual resources vs. planned resources (breach)resources (breach)

001122

<10%<10%10% to 20%10% to 20%

>20%>20%

5. Cost5. Cost--toto--date (breach)date (breach)

001122

No issuesNo issuesIssues < DeliverablesIssues < DeliverablesIssues > DeliverablesIssues > Deliverables

4. Unresolved issues4. Unresolved issues

002244

<10%<10%10% to 20%10% to 20%

>20%>20%

3. Deliverable hit3. Deliverable hit--rate (breach)rate (breach)

001122

<10%<10%10% to 20%10% to 20%

>20%>20%

2. Milestone hit2. Milestone hit--rate (breach)rate (breach)

001122

<10%<10%10% to 20%10% to 20%

>20%>20%

1. Status of the critical path (breach)1. Status of the critical path (breach)

Assessed Assessed ValueValueValueValueVarianceVarianceProject Vital SignProject Vital Sign



TotalTotal00--5 = Green 65 = Green 6--10 = Yellow Greater than 10 = Red10 = Yellow Greater than 10 = Red

113344



002244

<10%<10%10% to 20%10% to 20%

>20%>20%

6. Actual resources vs. planned 6. Actual resources vs. planned resources (breach)resources (breach)

002244

<10%<10%10% to 20%10% to 20%

>20%>20%

5. Cost5. Cost--toto--date (breach)date (breach)

001122



002244

<10%<10%10% to 20%10% to 20%

>20%>20%

3. Deliverable hit3. Deliverable hit--rate (breach)rate (breach)

001122

<10%<10%10% to 20%10% to 20%

>20%>20%

2. Milestone hit2. Milestone hit--rate (breach)rate (breach)

001122

<10%<10%10% to 20%10% to 20%

>20%>20%

1. Status of the critical path (breach)1. Status of the critical path (breach)




002244

Highly motivatedHighly motivatedSomewhat motivatedSomewhat motivatedLow level motivationLow level motivation

9. Team disposition (effectiveness)9. Team disposition (effectiveness)

001122

<15%<15%15% to 25%15% to 25%

>25%>25%8. Overtime utilization8. Overtime utilization

113344



002244

<10%<10%10% to 20%10% to 20%

>20%>20%6. Actual resources v. planned resources 6. Actual resources v. planned resources (breach)(breach)

001122

<10%<10%10% to 20%10% to 20%

>20%>20%5. Cost5. Cost--toto--date (breach)date (breach)

001122



002244

<10%<10%10% to 20%10% to 20%

>20%>20%3. Deliverable hit3. Deliverable hit--rate (breach)rate (breach)

001122

<10%<10%10% to 20%10% to 20%

>20%>20%2. Milestone hit2. Milestone hit--rate (breach)rate (breach)

001122

<10%<10%10% to 20%10% to 20%

>20%>20%1. Status of the critical path (breach)1. Status of the critical path (breach)



Lines of Command and Frequency of ReportingLines of Command and Frequency of Reporting

•• It is difficult to offer a universal solution as to It is difficult to offer a universal solution as to when to escalate reporting of variance in when to escalate reporting of variance in specific vital signsspecific vital signs

•• We recommend setting thresholds for We recommend setting thresholds for escalationescalation–– Work with your sponsor, key functional managers, Work with your sponsor, key functional managers,

and team to define thresholds appropriate for your and team to define thresholds appropriate for your own situationown situation


Suggested Thresholds for Escalation of Vital Signs Suggested Thresholds for Escalation of Vital Signs ReportsReports

•• Variance up to 10%Variance up to 10%–– The individual team member is responsibleThe individual team member is responsible

•• Variance of 11% to 15%Variance of 11% to 15%–– The project manager takes responsibilityThe project manager takes responsibility

•• Variance of 16% to 20%Variance of 16% to 20%–– Escalate the problem to the functional managerEscalate the problem to the functional manager

•• Variance of 21% to 25%Variance of 21% to 25%–– Escalate the problem to the sponsor (donEscalate the problem to the sponsor (don’’t wait for t wait for

the next scheduled meeting)the next scheduled meeting)•• Variance above 25%Variance above 25%

–– Convene a meeting of the executive steering Convene a meeting of the executive steering committee to decide on the fate of the projectcommittee to decide on the fate of the project

–– If there is no steering committee, the sponsor If there is no steering committee, the sponsor makes the next set of decisionsmakes the next set of decisions


Early Warning Size ExerciseEarly Warning Size Exercise

•• Develop a list of 5 Develop a list of 5 ““vital signsvital signs”” that make that make sense in your culturesense in your culture

•• Develop a list of possible interpretations Develop a list of possible interpretations •• Timing: 15 minutesTiming: 15 minutes


Recovery PlanRecovery Plan


Review and Revise Due Diligence Review and Revise Due Diligence (Pre(Pre--Launch)Launch)



PrePre--Launch StageLaunch Stage

LaunchLaunchLaunch ImplementImplementImplementExecuteExecuteExecutePre LaunchPre LaunchPre Launch


Pre-Launch

1. Project Description2. Intra-Project Priority

Analysis3. Stakeholder Analysis4. Complexity Assessment5. Policies, Standards,

and Procedures

6. Impact Assessment7. Constraints & Obstacles8. Stability9. Issues

10. Risk Assessment11.Scope, Size12. Project Charter


Project CharterProject Charter



Due Diligence (PreDue Diligence (Pre--Launch)Launch)

•• Is there a useful project description?Is there a useful project description?–– Clear objectivesClear objectives–– Critical success indicatorsCritical success indicators–– Shutdown conditionsShutdown conditions

•• Are the priorities of the key stakeholders aligned?Are the priorities of the key stakeholders aligned?•• Is the complexity of the project appropriately figured Is the complexity of the project appropriately figured

into plans, estimates, and schedules?into plans, estimates, and schedules?•• Is the project in compliance with existing policies, Is the project in compliance with existing policies,

standards, and procedures?standards, and procedures?•• Are there impacts from other projects or systems Are there impacts from other projects or systems

causing problems?causing problems?•• What are the risks that the project faces?What are the risks that the project faces?•• What are the known issues?What are the known issues?•• Is there a useful scope statement?Is there a useful scope statement?

–– Inside scopeInside scope–– Outside scopeOutside scope


ExerciseExercise


Review and Revise Project Plan (Launch)Review and Revise Project Plan (Launch)



Launch StageLaunch Stage



Launch StepsLaunch Steps

•• Staffing and Staffing and Training PlanTraining Plan

•• Communication Communication PlanPlan

•• Project NotebookProject NotebookEstimates

Task Plan•• Prototyping PlanPrototyping Plan•• Scope Scope

Management PlanManagement PlanOrganization Plan

= Required for all projects= Required for all projects

Launch Plans & EstimatesPlans & Estimates


Characteristics of a Sound Project PlanCharacteristics of a Sound Project Plan

•• It has clearly defined objectivesIt has clearly defined objectives•• It has clearly defined scopeIt has clearly defined scope•• It has a well defined scope management planIt has a well defined scope management plan•• It has a well defined deliverables listIt has a well defined deliverables list•• It has a comprehensive task listIt has a comprehensive task list•• It has an explicit task networkIt has an explicit task network•• It has clearly defined responsibilitiesIt has clearly defined responsibilities•• It has a well defined organizational structureIt has a well defined organizational structure•• It has a communication planIt has a communication plan•• It has a well defined team member training It has a well defined team member training

planplan


ExerciseExercise


Review and Revise Project Schedule (Execute)



Execute StageExecute Stage



Execute StepsExecute Steps

SchedulesSchedulesProgress Reviews and Project ControlProgress Reviews and Project Control

= Required for all projects= Required for all projects

Execute Schedule, Track &ControlSchedule, Track &Control


Analysis & Problem SolvingAnalysis & Problem Solving

Project Scheduling and Tracking ProcessProject Scheduling and Tracking Process

Baseline project

schedule

Analyze variance

Assess impact of variance

Identify causes

for variance

Problems resolved?

Continue on current

baseline

Approved project plan & detailed estimates

Project actual

performance data

Record actual effort,

cost, & duration values

Scheduled project

Build & implement recovery

plan

Re-baseline & continue

Build and implement

cancellation planProject

vital signs

Continuing project work

Troubled project review

YES

Vital signs inputs

Other project information, observations

Variances NO

Cancel

Save

Continue project

No major changes

Significant changes

Validate

Enter

Continuetracking& control


FirstFirst…… A Quick CheckA Quick Check

•• Each team member calculates work hours Each team member calculates work hours available for project durationavailable for project duration

•• Compute total hours available for teamCompute total hours available for team•• Compute total number of effort hours neededCompute total number of effort hours needed•• Compare needed hours to available hoursCompare needed hours to available hours


Schedule Review ChecklistSchedule Review Checklist

•• Is there a project schedule?Is there a project schedule?•• Is the level of detail appropriate?Is the level of detail appropriate?•• Are the tasks dependencies depicted?Are the tasks dependencies depicted?•• Are the lags depicted?Are the lags depicted?•• Are the milestones depicted?Are the milestones depicted?•• Are the resources over allocated?Are the resources over allocated?•• Is the schedule updated frequently?Is the schedule updated frequently?

–– Are there start dates in the past?Are there start dates in the past?–– Is the remaining effort of tasks updated?Is the remaining effort of tasks updated?–– Are there numerous constrained dates?Are there numerous constrained dates?


No Percent CompleteNo Percent Complete

% Complete% Complete


Task Behind ScheduleTask Behind Schedule

•• If a task on the critical path is behind If a task on the critical path is behind scheduleschedule–– Discuss with the team member whether resolution Discuss with the team member whether resolution

of issues, fewer interruptions, additional help, of issues, fewer interruptions, additional help, and/or overtime work can helpand/or overtime work can help

–– Open a lookOpen a look--ahead window and determine ahead window and determine whether acceleration of any future critical path whether acceleration of any future critical path tasks can help make up for lost timetasks can help make up for lost time


Rework ReserveRework Reserve

•• Track and manage the rework being done by Track and manage the rework being done by team membersteam members

•• Two challenges that you will face are:Two challenges that you will face are:–– It is not always easy to differentiate between work It is not always easy to differentiate between work

and reworkand rework–– Team members may feel that the recording of this Team members may feel that the recording of this

data will reflect on their skills and competenciesdata will reflect on their skills and competencies


Four Important Rules of SchedulingFour Important Rules of Scheduling

1.1. Team members own their schedules and are Team members own their schedules and are responsible for themresponsible for them

2.2. All problems and delays are reported to the All problems and delays are reported to the project manager promptly and forthrightlyproject manager promptly and forthrightly

3.3. Deliverable completions should be crisp and Deliverable completions should be crisp and cleanclean

4.4. Revise schedules when necessary, but do so Revise schedules when necessary, but do so formally and distribute the results broadlyformally and distribute the results broadly


ExerciseExercise


Progress ReviewProgress Review


Progress Review MeetingsProgress Review Meetings

•• Are progress review meetings conducted at Are progress review meetings conducted at the appropriate frequency?the appropriate frequency?

•• Is a standard reporting template used?Is a standard reporting template used?•• Do the appropriate people attend and Do the appropriate people attend and

participate?participate?•• Does the meeting have the correct focus?Does the meeting have the correct focus?


Team Update FocusTeam Update Focus

•• Traditional focusTraditional focus–– Look backLook back

•• Desired focusDesired focus–– Look aheadLook ahead


Project StatusProject Status

•• In order to accurately assess the status of a In order to accurately assess the status of a project, the project manager must focus on:project, the project manager must focus on:–– The current statusThe current status

•• Where the project is nowWhere the project is now•• We suggest using project We suggest using project ““vital signsvital signs””

–– The futureThe future•• A look into the near future to see if the team will be able A look into the near future to see if the team will be able

to progress as plannedto progress as planned•• We suggest using the We suggest using the ““looklook--ahead windowahead window””


Worst Case ScenarioWorst Case Scenario

•• EvaluateEvaluate–– The minimal scope that must be delivered to the The minimal scope that must be delivered to the

customercustomer–– The maximum amount of money the customer is The maximum amount of money the customer is

willing to spend on the projectwilling to spend on the project–– The date the project must be finished and The date the project must be finished and

implementedimplemented–– The level of quality below which the product will be The level of quality below which the product will be

unacceptable to the customerunacceptable to the customer


Project Attributes and SubcomponentsProject Attributes and Subcomponents

•• ScheduleSchedule–– EstimatesEstimates

•• EffortEffort•• DurationDuration

–– CalendarsCalendars•• OrganizationOrganization•• Team membersTeam members

•• ScopeScope–– DeliverablesDeliverables

•• Must haveMust have•• Should haveShould have•• NiceNice--toto--havehave

–– FeaturesFeatures•• Must haveMust have•• Should haveShould have•• NiceNice--toto--havehave

•• BudgetBudget–– PeoplePeople

•• FTEFTE•• SkillsSkills

–– Support infrastructureSupport infrastructure•• HardwareHardware•• SoftwareSoftware•• TelecommunicationsTelecommunications•• FacilitiesFacilities•• Support servicesSupport services

•• QualityQuality–– Product qualityProduct quality

•• DeliverablesDeliverables•• FeaturesFeatures

–– Quality of lifeQuality of life•• Team membersTeam members


Dealing With Deadlines ExampleDealing With Deadlines Example

•• Schedule ReviewSchedule Review–– 5 days are gained through tighter estimates5 days are gained through tighter estimates–– 3 days through team calendar management3 days through team calendar management

•• Scope ReviewScope Review–– 10 days are gained by dropping certain 10 days are gained by dropping certain

deliverables and featuresdeliverables and features•• Budget ReviewBudget Review

–– 2 days are gained through budget for additional 2 days are gained through budget for additional human resourceshuman resources

•• Quality ReviewQuality Review–– 4 days are gained through product quality 4 days are gained through product quality

changeschanges–– 3 days are gained through overtime, impacting 3 days are gained through overtime, impacting

quality of lifequality of life


ExerciseExercise


How to Kill a Troubled ProjectHow to Kill a Troubled Project


Deploy Cancellation PlanDeploy Cancellation Plan

•• The objectives of the cancellation plan are to:The objectives of the cancellation plan are to:–– Cancel the project efficientlyCancel the project efficiently–– Ensure that the people involved with the project Ensure that the people involved with the project

are minimally impactedare minimally impacted

•• Suggested steps are:Suggested steps are:–– Review with HRReview with HR–– Review with legalReview with legal–– Make the official decision to cancelMake the official decision to cancel–– Develop the cancellation planDevelop the cancellation plan–– Communicate to all stakeholdersCommunicate to all stakeholders–– Cancel the projectCancel the project–– Implement the project component salvage planImplement the project component salvage plan–– Capture lessons learnedCapture lessons learned–– Open access to the sponsorOpen access to the sponsor


Successfully Identifying and Canceling a Troubled Successfully Identifying and Canceling a Troubled ProjectProject

•• Key factors in identifying and canceling a Key factors in identifying and canceling a troubled project are:troubled project are:–– A change in thinking that canceled projects carry a A change in thinking that canceled projects carry a

stigmastigma–– Carefully defined performance thresholdsCarefully defined performance thresholds----

runaway and shutdown conditionsrunaway and shutdown conditions–– A systematic process for identifying problems A systematic process for identifying problems

early in a projectearly in a project’’s life cycles life cycle–– A systematic process for canceling projectsA systematic process for canceling projects–– A process for capturing key lessons from the A process for capturing key lessons from the

cancellation process and improving future cancellation process and improving future performanceperformance


Words for the Wise Project ManagerWords for the Wise Project Manager

•• You are a leader: Team members take their You are a leader: Team members take their cues and direction from your explicit and cues and direction from your explicit and implicit actionsimplicit actions

•• Be mindful of what you express and convey in Be mindful of what you express and convey in an implicit manner, especially in stressful an implicit manner, especially in stressful situationssituations

•• Listen to the grapevine and donListen to the grapevine and don’’t ignore any t ignore any damaging rumorsdamaging rumors


Thank You!

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